Isn’t growth a good thing…

Given the fact that we face a constant barrage of less than stellar performance and growth numbers from almost every corner of the investment world, isn’t it a good thing that we continue to see growth from the ETF marketplace? I’m not talking about the “write it off as a statistical anomaly” type of growth. I’m talking about the “proven over a significant period of time” type of growth. As seen in several recent articles, ETFs continue to grow in number and in assets. David Hoffman’s article in Investment News cites an upcoming report that projects ETFs to reach the $1 trillion mark before 2011. Remember when 2011 seemed like it was far away, well that’s only 15 months from now.

A recent article in the Wall Street Journal cites that ETF assets were at $678 billion as of the end of August. If my math is correct, that would mean the ETF market is projected to tack on $222 billion before 2011. That’s an average net increase of $14.8 billion per month.  Tall order, but as more advisers seek to offer their investment strategy in an ETF, the more investor education and marketing will follow, the more growth the ETF market will see, and growth is a good thing.


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